Australand buoyed by Melbourne and Sydney affordable residential sales successes

At a time when growth in the residential housing sector is mired by tough lending practices and few affordable housing options, Australand Property Group is flourishing by feeding this hungry market.

“We see our ability to create and deliver new product, at or below the median price point in each of our markets, as a key competitive advantage. Particularly as home buyers are confronted with tighter lending criteria and a lack of new, affordable housing,” managing director Robert Johnston told the company’s AGM.

The group has $8.1 billion worth of residential property under development or management, and it focuses on the important housing markets of Sydney and Melbourne.

“During the year, we acquired two new sites in Sydney. The Clemton Park project in Sydney's inner west was acquired with our partner, LaSalle Investment Management. The first stage of the project sold out following its release in August last year, and we are now pre-selling the second stage. When complete the project will yield over 750 homes,” he says.

Australand is currently rezoning the Ashlar golf course in Sydney’s Blacktown, where it plans to develop 750 homes with prices ranging from $350,000 to $500,000 while in the southern suburbs it launched the Greenhills Beach project last August. It has pre-sold 80 lots for an average price of a tad over $800,000.

In Melbourne, the Burwood project has secured more than 100 sales in 2011. By completion in 2013 it will have 235 dwellings across many price points.

“While market conditions are currently challenging in the residential sector, we believe that our strategic positioning will deliver improved and more consistent returns over the next few years,” Robertson said.